Rally may continue further
For trend following traders, 61,500 would be sacrosanct support level, above which, the index could rally till 62,000-62,500; On the flip side, traders may prefer to exit from trading long positions, if it trades below 61,500
image for illustrative purpose
Mumbai: The benchmark indices witnessed a range-bound activity, NSE Nifty ended 90 points higher, while BSE Sensex was up by 248 points. Among sectors, oil and gas, auto and banking stocks showed some buying interest, whereas intraday profit booking was seen in selective reality stocks.
Technically, post morning intraday correction, the index bounced back sharply, on intraday charts it has formed reversal formation. The intraday texture is indicating continuation of uptrend rally in the near future.
"For the trend following traders now, 61,500 would be the sacrosanct support level. Above which, the index could rally till 62,000-62,500," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, traders may prefer to exit out from the trading long positions if the index trades below 61,500. Below 61,500 the chances of hitting 61,300 -61,200 would turn bright.
